Indices are set to post weekly losses as the dollar continues to attract
Indices are set to report a week of losses as the US dollar winning streak continues, the longest for 15 months. The greenback benefits from the economic situation in the US, which points to high rates for longer.
US indices
Indices are set to report a week of losses as the USD winning streak continues, the longest for 15 months. The greenback benefits from the economic situation in the US, which points to high rates for longer, economic difficulties also act as support for the dollar as the market looks for safety.
Evergrande group
In China, the world's most heavily indebted property developer, Evergrande has filed for bankruptcy protection in a Manhattan court. Evergrande, once China's top property developer, was found in 2021 to be struggling with more than $300 billion in liabilities as government officials tightened scrutiny on the real estate sector. Its liquidity crisis soon made it a symbol of the country's property sector woes.
Japanese economy
There's been a bit of relief for the Japanese yen; it's up for a second day after Japan's inflation rate remained at 3.3%. Economists had been expecting consumer price index (CPI) to drop to 2.5%. Last month, when inflation rose to 3.3% in June, it was the first time in eight years it outpaced the US figure, underscoring how Asia's most advanced economy is no longer an outlier in global inflation.
Core inflation came in line with expectations at 3.1%. Ex-food and energy, the so-called "core-core' inflation, the indicator favoured by the Bank of Japan (BOJ), climbed back up to 4.3%, a four-decade high it first reached in May.
UK retail sale
In the UK, retail sales fell more than expected in July. -1.2% month-over-month (MoM). Economists expected a 0.5% drop. On an annual basis, retail sales fell 3.2%.
Digital assets
Coinbase was one of the big losers on Wall Street in all sessions. It comes as the slide in Bitcoin continues. The FT reports that the sell-off coincided with a report in The Wall Street Journal stating that Elon Musk's privately held Spacex venture had written down the value of its bitcoin holdings by $373 million in the past two years and had sold the cryptocurrency.
Digital asset traders have kept close tabs on Musk since 2021's exposure to cryptocurrencies, when his electric-car company Tesla briefly accepted payments in Bitcoin.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
